The pricing and popularity of running shoes helps keep profit margins in the 20 percent range for retail shoe owners who stock them. Demand and profit margins typically depend on how well the owner understands the local marketplace that the store serves, followed by a particular shoe's collectibility and trend appeal.

Basic Business Model

Athletic footwear accounts for a major chunk of the demand needed to keep a retail store profitable. Athletic shoes account for about 41.5 percent of shoe retail sales, according to an analysis posted on the PowerHomeBiz website. As of 2002, figures compiled for the U.S. Census Bureau's Annual Retail Trade Survey showed the industry posting annual gross profit margins of 42.6 percent. This figure outpaced similar figures of 28.5 percent for food and beverage stores, 27.8 percent for electronics/appliance stores and 19.3 for gas stations.

Demographic Issues

Understanding the local market's size and characteristics also impacts a store's profit margin on running shoes. High-income area consumers expect brand name, high-end products, while lower-income buyers want quality at affordable prices. Novelty also spikes demand, as Nike showed in offering basic and collectible versions of its Air Force 1 model for $85 to $100 and $180, respectively, according to "Bloomberg Businessweek." Nike models typically averaged sell-through rates of 20 percent, which referred to how quickly the product sold out during its first week. However, sell-through rates averaged 100 percent for the Air Force 1 shoe.

Economic Concerns

Four out of 10 pairs of shoes sell at a discount in America, making it vital for a shoe-store owner to track how customers react to his pricing strategy, according to PowerHomeBiz. When the economy sours, shoe purchases lag far behind spending on other necessities, such as food, clothing and shelter. These trends became clear following America's 2008 economic slowdown, which resulted in a major earnings decrease for Foot Locker, the nation's premiere athletic apparel franchise. As of March 2008, Foot Locker reported $53 million in net earnings, versus $251 million for the previous year, according to "Running Intelligence."

Minimalist Product Margins

The so-called minimalist movement -- which advocates running barefoot, or with far less costly shoe products -- has exerted an impact on the marketplace, according to a May/June 2011 "Footwear Insight" article posted on Textile Insight's website. In addition, profit margins on insole products -- which offer multiple arch support options -- averaged 55 percent. Similarly, the growth of compression socks designed to prevent abrasions, and keep runners' feet dry, averaged 51 percent. Given the continued popularity and interest in such products, the magazine advised retailers to strongly consider these factors in future inventory decisions.

About the Author

Ralph Heibutzki's articles have appeared in the "All Music Guide," "Goldmine," "Guitar Player" and "Vintage Guitar." He is also the author of "Unfinished Business: The Life & Times Of Danny Gatton," and holds a journalism degree from Michigan State University.